Correlation Between FMEGR and CapitaLand Investment
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By analyzing existing cross correlation between FMEGR 3 01 DEC 31 and CapitaLand Investment Limited, you can compare the effects of market volatilities on FMEGR and CapitaLand Investment and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in FMEGR with a short position of CapitaLand Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of FMEGR and CapitaLand Investment.
Diversification Opportunities for FMEGR and CapitaLand Investment
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between FMEGR and CapitaLand is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding FMEGR 3 01 DEC 31 and CapitaLand Investment Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CapitaLand Investment and FMEGR is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on FMEGR 3 01 DEC 31 are associated (or correlated) with CapitaLand Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CapitaLand Investment has no effect on the direction of FMEGR i.e., FMEGR and CapitaLand Investment go up and down completely randomly.
Pair Corralation between FMEGR and CapitaLand Investment
Assuming the 90 days trading horizon FMEGR 3 01 DEC 31 is expected to generate 0.42 times more return on investment than CapitaLand Investment. However, FMEGR 3 01 DEC 31 is 2.39 times less risky than CapitaLand Investment. It trades about 0.03 of its potential returns per unit of risk. CapitaLand Investment Limited is currently generating about 0.01 per unit of risk. If you would invest 7,683 in FMEGR 3 01 DEC 31 on September 3, 2024 and sell it today you would earn a total of 645.00 from holding FMEGR 3 01 DEC 31 or generate 8.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 46.67% |
| Values | Daily Returns |
FMEGR 3 01 DEC 31 vs. CapitaLand Investment Limited
Performance |
| Timeline |
| FMEGR 3 01 |
| CapitaLand Investment |
FMEGR and CapitaLand Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FMEGR and CapitaLand Investment
The main advantage of trading using opposite FMEGR and CapitaLand Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FMEGR position performs unexpectedly, CapitaLand Investment can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in CapitaLand Investment will offset losses from the drop in CapitaLand Investment's long position.| FMEGR vs. CapitaLand Investment Limited | FMEGR vs. Boyd Gaming | FMEGR vs. Biglari Holdings | FMEGR vs. Aegon NV ADR |
| CapitaLand Investment vs. IRSA Inversiones Y | CapitaLand Investment vs. Anywhere Real Estate | CapitaLand Investment vs. Newmark Group | CapitaLand Investment vs. Wharf Real Estate |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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